Core Insights - The article discusses the rising trend of "credit washing" scams in the auto loan industry, where fraudsters manipulate their credit reports to secure loans they do not intend to repay [1][2]. Group 1: Definition and Mechanism - Credit washing is a fraudulent practice where individuals contest negative information on their credit reports, claiming errors or identity theft, which leads to temporary removal of adverse data [3][4]. - This process, known as "data suppression," allows the fraudster's credit score to temporarily improve, making them appear as low-risk borrowers [5]. Group 2: Fraudulent Behavior - Once the credit score is inflated, fraudsters exploit this to obtain auto loans, often as the final step in their scheme before disappearing with the purchased vehicle [6][7]. - The initial stages of identity theft involve building a fake identity through small, manageable accounts, gradually increasing their creditworthiness [6]. Group 3: Industry Impact - TransUnion reported a significant increase in incidents of "data suppression related to fraud allegations," with a rise of 228% from January 2024 to July 2025, indicating a growing concern within the industry [8].

Core Insights - TransUnion operates an underrated business model focused on providing credit reporting services to both businesses and consumers, which is essential for lenders [1] Company Overview - TransUnion has developed a scoring system that is valuable to lenders, allowing the company to build a substantial database that covers nearly one-seventh of the population [1]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

Transformation and Restructuring - TransUnion's transformation plan is expected to incur one-time pre-tax expenses of $355.0 to $375.0 million from Q4 2023 through the end of 2025, with anticipated annual savings of $120.0 to $140.0 million post-completion [132]. - TransUnion incurred cumulative expenses of $199.1 million through September 30, 2025, related to restructuring and technology investment [133]. - The company expects to reduce capital expenditures from 8% of revenue to 6% based on 2023 revenue after the completion of the transformation plan [132]. - The company plans to invest approximately $90 million in 2024 and 2025 for the final phase of its technology investment, which aims to enhance its global technology infrastructure [193]. Financial Performance - For the three months ended September 30, 2025, revenue increased by $84.5 million, or 7.8%, to $1,169.5 million compared to the same period in 2024 [151]. - For the nine months ended September 30, 2025, revenue increased by $258.0 million, or 8.2%, totaling $3,405.0 million compared to the same period in 2024 [151]. - Operating income for the three months ended September 30, 2025, increased by $51.3 million, or 32.8%, to $207.6 million compared to the same period in 2024 [151]. - Net income attributable to the company for the three months ended September 30, 2025, increased by $28.5 million, or 41.9%, totaling $96.6 million compared to the same period in 2024 [151]. - Adjusted Net Income for Q3 2025 was $216.5 million, a 5.8% increase from $204.5 million in Q3 2024 [205]. - For the nine months ended September 30, 2025, Adjusted Net Income was $637.2 million, a 10.5% increase from $576.6 million in the same period of 2024 [205]. Revenue Breakdown - U.S. Markets revenue for the three months ended September 30, 2025, increased by $64.8 million, or 7.6%, driven by growth in Financial Services and Emerging Verticals [174]. - Financial Services revenue rose by $70.7 million, or 19.3%, for the three months ended September 30, 2025, primarily due to price increases in the Mortgage line of business [175]. - International revenue for the three months ended September 30, 2025, increased by $18.5 million, or 7.7%, primarily due to higher local currency revenue in all regions except Asia Pacific [179]. - Canada revenue increased by $4.0 million, or 10.0%, for the three months ended September 30, 2025, driven by broad-based volume increases and new business wins [180]. - Consumer Interactive revenue decreased by $28.9 million, or 16.6%, for the three months ended September 30, 2025, due to large breach revenue in the third quarter of 2024 [177]. Expenses and Costs - Cost of services for the three months ended September 30, 2025, increased by $31.6 million, or 7.1%, to $480.3 million compared to the same period in 2024 [151]. - Selling, general and administrative expenses for the three months ended September 30, 2025, increased by $25.1 million, or 8.2%, totaling $330.8 million compared to the same period in 2024 [151]. - Stock-based compensation expenses increased by $2.6 million, or 7.8%, totaling $36.4 million for the three months ended September 30, 2025 [201]. - The accelerated technology investment totaled $22.1 million for the three months ended September 30, 2025, compared to $21.8 million in 2024, reflecting ongoing migration to the cloud [203]. - Operating model optimization costs decreased significantly by 75.7% to $11.5 million for the three months ended September 30, 2025, compared to $47.3 million in 2024 [203]. Taxation - The effective tax rate for the three months ended September 30, 2025, was reported at 33.3%, higher than the 21.0% U.S. federal corporate statutory rate [168]. - The company reported a significant increase in provision for income taxes, which rose by $25.1 million, or not meaningful, from $24.9 million in 2024 to $50.0 million in 2025 for the three-month period [201]. - Adjusted effective tax rates were reported at 27.1% and 26.4% for the three and nine months ended September 30, 2025, respectively, higher than the 21.0% U.S. federal corporate statutory rate [211]. Share Repurchase and Dividends - The share repurchase plan was authorized for up to $1.0 billion, allowing management discretion in repurchasing shares [137]. - The company repurchased approximately 1,260,000 shares of common stock for a total of $113.8 million during the three months ended September 30, 2025 [138]. - As of September 30, 2025, $348.9 million remains available for repurchases under the 2025 Repurchase Plan [138]. - The company paid dividends of $0.115 per share totaling $68.3 million in the first three quarters of 2025, with plans to continue quarterly dividends subject to Board approval [221]. Debt and Liquidity - The company had no outstanding balance under the Senior Secured Revolving Credit Facility as of September 30, 2025, with $598.8 million available for borrowing [217]. - For the nine months ended September 30, 2025, net income attributable to TransUnion was $420.4 million, with total debt amounting to $5,120.1 million, resulting in a leverage ratio of 2.7 [213]. - Cash and cash equivalents totaled $749.9 million as of September 30, 2025, an increase from $679.5 million at December 31, 2024, with $471.2 million held outside the United States [217]. - Cash provided by operating activities increased to $668.1 million for the nine months ended September 30, 2025, compared to $578.5 million in the same period of 2024, reflecting an increase of $89.6 million [225]. Economic and Market Conditions - The U.S. Federal Reserve initiated three consecutive federal fund rate cuts totaling 100 basis points starting in Q4 2024, which may influence consumer confidence and demand for lending products [126]. - Elevated inflation levels have negatively impacted demand for TransUnion's services, with potential future implications for consumer spending and credit demand [131]. - The macroeconomic conditions in the U.K. and Canada are showing improvement, while India's GDP growth is expected to slow moderately but remain robust [127]. Foreign Currency and Interest Rate Risk - The company is exposed to foreign currency exchange rate risk, as it transacts in multiple currencies, including British pounds and South African rand, which can affect revenue and expenses [247]. - Approximately 75.5% of the company's variable-rate debt is hedged with interest rate swaps, indicating a significant management of interest rate risk [244]. - The company entered into interest rate swap agreements with a notional amount of $1,244.0 million, fixing variable interest rates between 3.2893% and 3.6920% for a portion of its Senior Secured Term Loan, effective from June 30, 2025, to December 31, 2027 [231].

Financial Data and Key Metrics Changes - TransUnion achieved 8% consolidated revenue growth on a reported basis and 7% on an organic constant currency basis, with organic constant currency growth reaching 11% when excluding last year's significant breach remediation win [25][26] - Adjusted EBITDA increased by 8%, with a margin of 36.3%, exceeding guidance of 35.6% to 36.2% [26] - Adjusted diluted earnings per share rose to $1.06, marking a 6% increase and surpassing the high end of guidance [26] Business Line Data and Key Metrics Changes - U.S. Markets revenue grew 7% on an organic constant currency basis, or 13% excluding last year's breach win, with adjusted EBITDA margin at 38.4% [28] - Financial services revenue increased by 19%, or 12% excluding mortgage, driven by strong performance in a stable market [28] - Emerging verticals saw growth accelerate to 7.5%, with double-digit growth in insurance and strong performance in trusted call solutions and marketing [31][32] Market Data and Key Metrics Changes - International revenue grew by 6% on an organic constant currency basis, with Canada, the UK, and Africa achieving double-digit growth despite challenging economic conditions [10][34] - India experienced 5% growth, slightly below expectations due to new tariffs impacting U.S. export-dependent businesses, but is expected to see high single-digit growth in the fourth quarter [10][35] - The UK and Canada both grew by 11%, driven by strong volumes from major banking customers and new business wins [38][39] Company Strategy and Development Direction - The company is advancing its technology modernization to drive cost savings and innovation, with plans to complete U.S. credit migrations by mid-2026 [13][16] - TransUnion is focusing on AI-led growth, leveraging proprietary data to enhance product offerings and improve operational efficiency [21][22] - The company is committed to increasing shareholder value through share repurchases, raising its repurchase authorization to $1 billion [7][24] Management's Comments on Operating Environment and Future Outlook - Management raised 2025 guidance across all metrics, expecting 8% organic constant currency revenue growth and 9% adjusted EBITDA growth, reflecting strong third-quarter performance and stable lending trends in the U.S. [5][12] - The company remains optimistic about the long-term growth potential in India and the mortgage market, anticipating a normalization in mortgage activity as interest rates decline [56][59] - Management emphasized the importance of innovation and product development in driving future growth, particularly in the areas of credit analytics, fraud, and marketing solutions [60][61] Other Important Information - The company incurred $34 million in one-time charges related to its transformation program, with cumulative expenses totaling $349 million [27] - The company expects to deliver $35 million in operating expense savings by 2026 and reduce capital expenditures to 6% of revenue [16][50] Q&A Session Summary Question: How much of the U.S. Market growth is coming from FICO pricing pass-through? - Management indicated that a significant portion of the 5% growth relates to mortgage pricing, with strong growth in consumer lending and emerging verticals contributing to overall performance [64][66] Question: Are you incrementally reinvesting into strength? - Management confirmed that they are accelerating investments in product innovation and AI initiatives to sustain growth, while maintaining a conservative approach to guidance [75][80] Question: How sustainable is the growth in emerging verticals? - Management stated that the growth in emerging verticals is stable, with no one-time factors affecting the results, and highlighted strong performance in insurance and marketing solutions [82][84] Question: How is TransUnion positioned in the marketing business with proprietary data? - Management emphasized that TransUnion's proprietary data and regulatory compliance provide a defensible foundation for growth in marketing and fraud solutions, with AI expected to unlock further opportunities [92][94]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Third Quarter 2025 Earnings October 23, 2025 Chris Cartwright, President and CEO Todd Cello, CFO This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Factors that could cause TransUnion's actu ...

Core Insights - A wave of positive third-quarter 2025 earnings reports has boosted markets, with several major companies exceeding analyst expectations, while ongoing geopolitical developments, particularly concerning Ukraine and Russia, remain a significant focus [2]. Strong Q3 Earnings Performance Across Sectors - Hasbro (HAS) reported adjusted EPS of $1.68, beating the estimated $1.63, with revenue of $1.39 billion surpassing the forecast of $1.34 billion. The company raised its full-year adjusted EBITDA guidance to $1.24 billion to $1.26 billion from $1.17 billion to $1.20 billion, driven by growth in its Wizards of the Coast and Digital Gaming segments [3][10]. - Honeywell (HON) posted adjusted EPS of $2.82, significantly higher than the estimated $2.57, with quarterly revenue of $10.41 billion exceeding the $10.15 billion estimate. The company updated its full-year sales outlook to between $40.78 billion and $40.98 billion and adjusted EPS to $10.60 to $10.70 [4][10]. - First Citizens BancShares (FCNCA) announced adjusted EPS of $44.62, outperforming the $41.74 estimate, with net interest income of $1.73 billion above the $1.71 billion estimate and a net interest margin of 3.26%, slightly higher than the estimated 3.24% [5][10]. - TransUnion (TRU) reported adjusted net income of $216 million against an estimate of $204.3 million, with Q3 EPS of $0.49 and adjusted EPS of $1.10 versus an estimate of $1.04. Revenue for the quarter was $1,170 million, exceeding the $1,133 million estimate [6]. - CenterPoint Energy (CNP) reported adjusted EPS of $0.50, surpassing the $0.44 estimate, and reaffirmed its full-year adjusted EPS guidance of $1.75 to $1.77. PG&E (PCG) announced Q3 adjusted core EPS of $0.50, beating the estimated $0.43, and maintained its full-year adjusted EPS forecast between $1.49 and $1.51 [7]. - Atlas Copco reported Q3 adjusted EBIT of SEK 8,862 million, exceeding the estimate of SEK 8,677 million, with revenue of SEK 41,621 million slightly above the estimated SEK 41,333 million [8]. - Dow (DOW) reported Q3 adjusted EPS of -$0.19, better than the estimated -$0.29, but net sales of $9,973 million fell short of the estimated $10,185 million [9][10]. Tesla's Capital Expenditures and Geopolitical Landscape - Tesla (TSLA) recognized $238 million in expenses within its automotive segment during Q3, primarily due to charges for supercomputer assets, contract terminations, and employee terminations. The company expects full-year capital expenditures to be around $9.00 billion [11][10]. - On the geopolitical front, Ukrainian President Volodymyr Zelenskiy urged EU leaders to enhance Ukraine's long-range capabilities to counteract Russia, while Russia's Rosatom CEO warned that deteriorating Russia-U.S. relations could impact uranium supplies [12].

Core Insights - TransUnion reported strong financial results for Q3 2025, with total revenue reaching $1,170 million, marking an 8% increase compared to Q3 2024. Organic constant currency growth was 11%, the highest since 2021 [2][4][6]. Financial Performance - Revenue growth was driven by significant contributions from Financial Services, which grew by 19%, and Emerging Verticals, which increased by 7.5%. International revenue grew by 6% on an organic constant currency basis, with notable double-digit growth in the UK, Canada, and Africa [4][6]. - Net income attributable to TransUnion for the quarter was $97 million, up from $68 million in Q3 2024. Diluted earnings per share increased to $0.49 from $0.35 [7][29]. - Adjusted EBITDA for the quarter was $425 million, an 8% increase from $394 million in Q3 2024, maintaining a margin of 36.3% [7][29]. Shareholder Returns - The company has accelerated its share repurchase program, repurchasing $200 million in shares year-to-date and increasing the authorization for share repurchases to $1 billion. The management views share repurchases as an attractive use of capital [4][6]. Guidance and Outlook - TransUnion raised its 2025 revenue growth guidance to a range of 8% to 8.5%, supported by stable U.S. lending trends and strong commercial momentum [4][6][11]. Segment Performance - In the U.S. Markets, Financial Services revenue was $438 million with a growth rate of 19%, while Emerging Verticals generated $330 million with a growth rate of 7%. Consumer Interactive revenue decreased by 17% [8][9]. - International revenue totaled $260 million, with Canada growing by 10%, the UK by 24%, and Africa by 14% [8][9]. Liquidity and Capital Resources - As of September 30, 2025, cash and cash equivalents stood at $750 million, an increase from $679 million at the end of 2024. Cash provided by operating activities for the nine months ended September 30, 2025, was $668 million, compared to $579 million in 2024 [9][10]. Capital Expenditures - For the nine months ended September 30, 2025, capital expenditures were $229 million, representing 7% of revenue, compared to $199 million or 6% of revenue in 2024 [10]. Summary of Financial Metrics - The company reported total revenue of $1,169.5 million for Q3 2025, with operating income of $207.6 million. Total operating expenses were $961.9 million, leading to a net income of $100.2 million for the quarter [28][29].

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Third Quarter 2025 Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Highlights) TransUnion reported strong third-quarter 2025 results, exceeding financial guidance with an 8% total revenue increase and significant growth in key segments. The company also increased its share repurchase authorization and raised its full-year 2025 guidance Third Quarter 2025 Key Financial Metrics (YoY Growth) | Metric | Q3 2025 Value | YoY Growth (Reported) | YoY Growth (Organic Constant Currency) | | :-------------------------------- | :------------ | :-------------------- | :----------------------------------- | | Total Revenue | $1,170 million | 8% | 7% (11% excluding breach remediation) | | Net Income Attributable to TransUnion | $97 million | 42.6% | - | | Diluted EPS | $0.49 | 40% | - | | Adjusted Net Income | $216 million | 5.4% | - | | Adjusted Diluted EPS | $1.10 | 5.8% | - | | Adjusted EBITDA | $425 million | 8% | 8.3% | | Adjusted EBITDA Margin | 36.3% | 0% | - | - Increased pace of share repurchases to **$160 million** in Q3 and October, bringing year-to-date total to **$200 million**, and increased share repurchase authorization up to **$1 billion**[6](index=6&type=chunk)[7](index=7&type=chunk) - Raising 2025 financial guidance, now expecting **8 to 8.5 percent revenue growth**[6](index=6&type=chunk)[7](index=7&type=chunk) [CEO Commentary and Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Outlook) CEO Chris Cartwright highlighted the company's strong Q3 performance, exceeding guidance, with accelerated growth in Financial Services and Emerging Verticals. He noted the strongest underlying growth since 2021 and expressed confidence in raising 2025 guidance due to stable U.S. lending trends and commercial momentum. The company is also focused on returning capital to shareholders through increased share repurchases - Revenue growth was **8%**; excluding last year's large breach remediation win, organic constant currency growth was **11%**, the strongest underlying growth since 2021[6](index=6&type=chunk) - Financial Services and Emerging Verticals growth accelerated to **19 percent** and **7.5 percent**, respectively[6](index=6&type=chunk) - International grew **6 percent** on an organic constant currency basis, with double-digit growth in the UK, Canada and Africa[6](index=6&type=chunk) - Raising 2025 guidance, supported by Q3 outperformance, stable U.S. lending trends, and strong commercial momentum, now expecting **8 to 8.5 percent revenue growth**[6](index=6&type=chunk) - Strong earnings growth, improving free cash flow generation, and natural de-levering position the company to accelerate the return of capital to shareholders, with share repurchases viewed as a highly attractive use of capital[6](index=6&type=chunk) [Third Quarter 2025 Financial Performance](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Performance) Consolidated Financial Results (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Total Revenue | $1,169.5M | $1,085.0M | 7.8% | | Net Income Attributable to TransUnion | $96.6M | $68.0M | 42.1% | | Diluted Earnings per Share | $0.49 | $0.35 | 40.0% | | Adjusted Net Income | $216M | $205M | 5.4% | | Adjusted Diluted Earnings per Share | $1.10 | $1.04 | 5.8% | | Adjusted EBITDA | $425M | $394M | 8.0% | | Adjusted EBITDA Margin | 36.3% | 36.3% | 0.0% | [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) TransUnion achieved an 8% increase in total revenue for Q3 2025, reaching $1,170 million. Net income attributable to TransUnion significantly rose by 42.6% to $97 million, with diluted EPS increasing by 40% to $0.49. Adjusted EBITDA also grew by 8% to $425 million, maintaining a stable margin of 36.3% [Revenue](index=1&type=section&id=Revenue) Total revenue for Q3 2025 was $1,170 million, an 8% increase compared to Q3 2024. On a constant currency basis, revenue also increased by 8%, and by 7% on an organic constant currency basis Total Revenue Growth (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 Revenue | Reported Growth | Constant Currency Growth | Organic Constant Currency Growth | | :------------- | :-------------- | :-------------- | :----------------------- | :------------------------------- | | Total Revenue | $1,170 million | 8% | 8% | 7% | [Earnings (GAAP)](index=1&type=section&id=Earnings%20(GAAP)) Net income attributable to TransUnion for Q3 2025 was $97 million, a significant increase from $68 million in Q3 2024. Diluted earnings per share rose to $0.49 from $0.35 in the prior year, and the net income margin improved to 8.3% from 6.3% GAAP Earnings (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Net Income Attributable to TransUnion | $97 million | $68 million | 42.6% | | Diluted Earnings per Share | $0.49 | $0.35 | 40.0% | | Net Income Attributable to TransUnion Margin | 8.3% | 6.3% | 2.0 pp | | Operating Income | $207.6M | $156.4M | 32.7% | [Adjusted Earnings (Non-GAAP)](index=1&type=section&id=Adjusted%20Earnings%20(Non-GAAP)) Adjusted Net Income for Q3 2025 was $216 million, up from $205 million in Q3 2024, resulting in Adjusted Diluted Earnings per Share of $1.10, an increase from $1.04. Adjusted EBITDA grew by 8% to $425 million, with the Adjusted EBITDA margin remaining stable at 36.3% Non-GAAP Adjusted Earnings (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Adjusted Net Income | $216 million | $205 million | 5.4% | | Adjusted Diluted EPS | $1.10 | $1.04 | 5.8% | | Adjusted EBITDA | $425 million | $394 million | 8.0% | | Adjusted EBITDA Margin | 36.3% | 36.3% | 0.0% | [Segment Results](index=2&type=section&id=Segment%20Results) TransUnion's U.S. Markets segment reported an 8% revenue increase, driven by strong 19% growth in Financial Services and 7% in Emerging Verticals, despite a 17% decline in Consumer Interactive. The International segment also saw an 8% revenue increase, with notable double-digit organic constant currency growth in Canada, the UK, and Africa Segment Revenue and Adjusted EBITDA Growth (Q3 2025 vs. Q3 2024) | Segment | Q3 2025 Revenue | Reported Growth | Constant Currency Growth | Organic Constant Currency Growth | | :-------------------- | :-------------- | :-------------- | :----------------------- | :------------------------------- | | **U.S. Markets:** | | | | | | Financial Services | $438 million | 19% | 19% | 19% | | Emerging Verticals | $330 million | 7% | 7% | 7% | | Consumer Interactive | $145 million | (17)% | (17)% | (18)% | | Total U.S. Markets Revenue | $913 million | 8% | 8% | 7% | | U.S. Markets Adjusted EBITDA | $351 million | 10% | 10% | 9% | | **International:** | | | | | | Canada | $43 million | 10% | 11% | 11% | | Latin America | $34 million | 1% | 0% | 0% | | United Kingdom | $71 million | 24% | 19% | 11% | | Africa | $19 million | 14% | 12% | 12% | | India | $69 million | 0% | 5% | 5% | | Asia Pacific | $24 million | (8)% | (8)% | (8)% | | Total International Revenue | $260 million | 8% | 8% | 6% | | International Adjusted EBITDA | $112 million | 2% | 2% | 3% | [U.S. Markets](index=2&type=section&id=U.S.%20Markets) The U.S. Markets segment reported an 8% increase in total revenue to $913 million. This growth was primarily driven by Financial Services, which grew 19%, and Emerging Verticals, which increased by 7%. Consumer Interactive revenue, however, declined by 17%. Adjusted EBITDA for U.S. Markets grew by 10% U.S. Markets Segment Performance (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 Value | Reported Growth | Organic Constant Currency Growth | | :----------------------- | :------------ | :-------------- | :------------------------------- | | Financial Services Revenue | $438 million | 19% | 19% | | Emerging Verticals Revenue | $330 million | 7% | 7% | | Consumer Interactive Revenue | $145 million | (17)% | (18)% | | Total U.S. Markets Revenue | $913 million | 8% | 7% | | U.S. Markets Adjusted EBITDA | $351 million | 10% | 9% | [International](index=2&type=section&id=International) The International segment's total revenue increased by 8% to $260 million. Key contributors to growth included the United Kingdom (24% reported, 11% organic constant currency), Canada (10% reported, 11% organic constant currency), and Africa (14% reported, 12% organic constant currency). International Adjusted EBITDA grew by 2% International Segment Performance (Q3 2025 vs. Q3 2024) | Metric | Q3 2025 Value | Reported Growth | Organic Constant Currency Growth | | :----------------------- | :------------ | :-------------- | :------------------------------- | | Canada Revenue | $43 million | 10% | 11% | | United Kingdom Revenue | $71 million | 24% | 11% | | Africa Revenue | $19 million | 14% | 12% | | Total International Revenue | $260 million | 8% | 6% | | International Adjusted EBITDA | $112 million | 2% | 3% | [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) TransUnion's cash and cash equivalents increased to $750 million at September 30, 2025, from $679 million at December 31, 2024. Cash provided by operating activities for the nine months ended September 30, 2025, rose to $668 million, primarily due to improved operating performance and lower interest expense. Cash used in investing activities increased to $307 million, mainly due to the Monevo acquisition and higher capital expenditures, while cash used in financing activities also increased to $301 million due to share repurchases Cash and Cash Equivalents (as of September 30, 2025) | Metric | September 30, 2025 | December 31, 2024 | | :-------------------- | :----------------- | :---------------- | | Cash and cash equivalents | $750 million | $679 million | Cash Flow Activities (Nine Months Ended September 30) | Activity | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :----- | | Cash provided by operating activities | $668 million | $579 million | +$89 million | | Cash used in investing activities | $307 million | $195 million | +$112 million | | Cash used in financing activities | $301 million | $220 million | +$81 million | | Capital expenditures | $229 million | $199 million | +$30 million | - Increase in cash provided by operating activities primarily due to improved operating performance and lower interest expense in 2025, partially offset by higher income tax payments and bonus payouts[11](index=11&type=chunk) - Increase in cash used in investing activities primarily due to the acquisition of Monevo, increased capital expenditures, and investments in a note receivable[11](index=11&type=chunk) - Increase in cash used in financing activities primarily due to share repurchases in 2025, partially offset by higher debt prepayments in 2024[11](index=11&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) [Fourth Quarter and Full Year 2025 Guidance](index=3&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202025%20Guidance) TransUnion has raised its full-year 2025 guidance, now expecting total revenue growth of 8% to 8.5%. For Q4 2025, the company anticipates revenue between $1,119 million and $1,139 million, with reported growth of 8% to 10%. Full-year Adjusted Diluted EPS is projected to be $4.19 to $4.25, and Adjusted EBITDA is expected to be $1,622 million to $1,637 million Fourth Quarter and Full Year 2025 Financial Guidance | Metric | Q4 2025 (Low) | Q4 2025 (High) | FY 2025 (Low) | FY 2025 (High) | | :-------------------------------- | :------------ | :------------- | :------------ | :------------- | | Revenue, as reported | $1,119M | $1,139M | $4,524M | $4,544M | | Revenue growth (as reported) | 8% | 10% | 8% | 8.5% | | Net income attributable to TransUnion | $84M | $93M | $438M | $448M | | Diluted Earnings per Share | $0.42 | $0.47 | $2.21 | $2.26 | | Adjusted EBITDA, as reported | $393M | $407M | $1,622M | $1,637M | | Adjusted EBITDA growth, as reported | 4% | 8% | 8% | 9% | | Adjusted Diluted Earnings per Share | $0.97 | $1.02 | $4.19 | $4.25 | - Additional revenue growth assumptions include an immaterial impact from changing exchange rates for Q4 and FY 2025, approximately **1 point benefit** from recent acquisition for Q4 and **0.5 point** for FY 2025, and approximately **2 points benefit** from mortgage for Q4 and FY 2025[13](index=13&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [About TransUnion](index=4&type=section&id=About%20TransUnion) TransUnion is a global information and insights company with over 13,000 associates in more than 30 countries. The company focuses on enabling trust by providing a 'Tru™ picture' of each person, extending beyond core credit into areas like marketing, fraud, risk, and advanced analytics. Their mission is to provide 'Information for Good,' leading to economic opportunity and personal empowerment - TransUnion is a global information and insights company with over **13,000 associates** operating in more than **30 countries**[15](index=15&type=chunk) - The company makes trust possible by ensuring each person is reliably represented in the marketplace, providing an actionable view of consumers[15](index=15&type=chunk) - Innovative solutions extend beyond core credit into areas such as marketing, fraud, risk, and advanced analytics, driven by acquisitions and technology investments[15](index=15&type=chunk) [Forward-Looking Statements & Risk Factors](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This section outlines forward-looking statements and significant risks and uncertainties that could cause actual results to differ materially from expectations. Key risk factors include macroeconomic effects, market conditions, ability to provide competitive services, data security, regulatory changes, litigation, and the impact of artificial intelligence - Forward-looking statements are based on current beliefs and expectations and are subject to significant risks and uncertainties[17](index=17&type=chunk) - Key risk factors include macroeconomic effects (tariffs, inflation, recession), ability to provide competitive services and prices, data security and integrity, government regulation, litigation, and the company's approach to artificial intelligence[18](index=18&type=chunk) - Other factors include managing costs, executing transformation plans, maintaining internal controls, economic and political stability, developing new services, managing operations, acquiring and integrating businesses, protecting intellectual property, reliance on vendors, market consolidation, and changes in tax laws[21](index=21&type=chunk) [Financial Statements (Unaudited)](index=6&type=section&id=Financial%20Statements%20(Unaudited)) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) TransUnion's consolidated balance sheet shows total assets increased to $11,112.8 million at September 30, 2025, from $10,984.8 million at December 31, 2024. This was primarily driven by increases in cash and cash equivalents, trade accounts receivable, and goodwill. Total liabilities decreased slightly, while total stockholders' equity increased Consolidated Balance Sheet Highlights (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | | Cash and cash equivalents | $749.9 | $679.5 | | Total current assets | $1,978.8 | $1,801.8 | | Goodwill | $5,252.5 | $5,144.3 | | Total assets | $11,112.8 | $10,984.8 | | Total current liabilities | $984.9 | $1,059.6 | | Long-term debt | $5,035.9 | $5,076.6 | | Total liabilities | $6,534.3 | $6,666.0 | | Total stockholders' equity | $4,578.5 | $4,318.8 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2025, TransUnion reported total revenue of $3,405.0 million, up from $3,147.0 million in 2024. Operating income increased significantly to $654.2 million from $495.9 million, and net income attributable to TransUnion rose to $354.2 million from $218.2 million in the prior year period Consolidated Statements of Operations Highlights (Nine Months Ended Sep 30, in millions) | Metric | 2025 | 2024 | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | | Revenue | $3,405.0 | $3,147.0 | 8.2% | | Total operating expenses | $2,750.8 | $2,651.0 | 3.8% | | Operating income | $654.2 | $495.9 | 31.9% | | Income before income taxes | $500.7 | $300.5 | 66.6% | | Net income attributable to TransUnion | $354.2 | $218.2 | 62.3% | | Diluted earnings per common share | $1.80 | $1.11 | 62.2% | Consolidated Statements of Operations Highlights (Three Months Ended Sep 30, in millions) | Metric | 2025 | 2024 | Change (%) | | :-------------------------------- | :----- | :----- | :--------- | | Revenue | $1,169.5 | $1,085.0 | 7.8% | | Operating income | $207.6 | $156.4 | 32.7% | | Net income attributable to TransUnion | $96.6 | $68.0 | 42.1% | | Diluted earnings per common share | $0.49 | $0.35 | 40.0% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2025, cash provided by operating activities increased to $668.1 million from $578.5 million in the prior year. Cash used in investing activities increased to $307.1 million, primarily due to higher capital expenditures and acquisitions. Cash used in financing activities also increased to $300.9 million, mainly due to share repurchases Consolidated Statements of Cash Flows Highlights (Nine Months Ended Sep 30, in millions) | Activity | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Net income | $365.3 | $231.6 | +$133.7 | | Cash provided by operating activities | $668.1 | $578.5 | +$89.6 | | Cash used in investing activities | $(307.1) | $(195.1) | -$112.0 | | Cash used in financing activities | $(300.9) | $(219.5) | -$81.4 | | Net change in cash and cash equivalents | $70.4 | $167.0 | -$96.6 | | Cash and cash equivalents, end of period | $749.9 | $643.2 | +$106.7 | - Capital expenditures for the nine months ended September 30, 2025, were **$229.3 million**, up from **$198.7 million** in 2024[27](index=27&type=chunk) - Repurchase of common stock amounted to **$152.6 million** in 2025, compared to none in 2024[27](index=27&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Non-GAAP Definitions and Rationale](index=9&type=section&id=Non-GAAP%20Definitions%20and%20Rationale) TransUnion provides several non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS, to offer supplemental insights into its operating performance. These measures exclude items not considered indicative of cash operations or ongoing performance, such as stock-based compensation, operating model optimization, accelerated technology investments, and M&A-related expenses. They are used by management for incentive compensation and by investors to evaluate performance and debt servicing ability - Non-GAAP measures (Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS) are presented to eliminate the impact of certain items not indicative of cash operations and ongoing operating performance[29](index=29&type=chunk)[30](index=30&type=chunk) - Adjustments to GAAP measures include net interest expense, provision for income taxes, depreciation and amortization, stock-based compensation, operating model optimization program costs, accelerated technology investment costs, and mergers and acquisitions, divestitures and business optimization expenses[33](index=33&type=chunk)[34](index=34&type=chunk)[37](index=37&type=chunk) - Adjusted EBITDA is used as an incentive compensation measure and is tied to the company's Leverage Ratio for debt covenants[31](index=31&type=chunk)[32](index=32&type=chunk) - Constant currency growth rates and organic constant currency growth rates are used to evaluate financial results without the impact of foreign currency fluctuations and recent acquisitions, respectively[41](index=41&type=chunk) [Revenue and Adjusted EBITDA Growth Rates (Schedule 1)](index=13&type=section&id=Revenue%20and%20Adjusted%20EBITDA%20Growth%20Rates%20(Schedule%201)) Schedule 1 provides a detailed breakdown of revenue and Adjusted EBITDA growth rates for consolidated and segment levels, comparing Q3 2025 with Q3 2024, and the nine months ended September 30, 2025, with the prior year. It includes reported, constant currency (CC), and organic constant currency (Organic CC) growth rates, highlighting the impact of inorganic growth Consolidated Revenue and Adjusted EBITDA Growth Rates (Q3 2025 vs. Q3 2024) | Metric | Reported Growth | CC Growth | Inorganic | Organic CC Growth | | :-------------------- | :-------------- | :-------- | :-------- | :---------------- | | Consolidated Revenue | 7.8% | 7.8% | 0.6% | 7.2% | | Consolidated Adjusted EBITDA | 8.0% | 8.2% | (0.1)% | 8.3% | U.S. Markets Revenue Growth Rates (Q3 2025 vs. Q3 2024) | Segment | Reported Growth | CC Growth | Inorganic | Organic CC Growth | | :-------------------- | :-------------- | :-------- | :-------- | :---------------- | | Financial Services | 19.3% | 19.3% | —% | 19.3% | | Emerging Verticals | 7.5% | 7.5% | —% | 7.5% | | Consumer Interactive | (16.6)% | (16.7)% | 1.2% | (17.8)% | | Total U.S. Markets | 7.6% | 7.6% | 0.2% | 7.4% | International Revenue Growth Rates (Q3 2025 vs. Q3 2024) | Segment | Reported Growth | CC Growth | Inorganic | Organic CC Growth | | :-------------------- | :-------------- | :-------- | :-------- | :---------------- | | Canada | 10.0% | 11.0% | —% | 11.0% | | United Kingdom | 23.5% | 18.9% | 8.6% | 10.6% | | Africa | 13.7% | 11.9% | —% | 11.9% | | Total International | 7.7% | 7.7% | 2.1% | 5.7% | [Consolidated and Segment Revenue, Adjusted EBITDA, and Adjusted EBITDA Margin (Schedule 2)](index=14&type=section&id=Consolidated%20and%20Segment%20Revenue%2C%20Adjusted%20EBITDA%2C%20and%20Adjusted%20EBITDA%20Margin%20(Schedule%202)) Schedule 2 details consolidated and segment-level revenue, Adjusted EBITDA, and Adjusted EBITDA margins for Q3 and the nine months ended September 30, 2025 and 2024. It also provides a reconciliation of Net income attributable to TransUnion to consolidated Adjusted EBITDA, outlining specific adjustments such as stock-based compensation, M&A expenses, accelerated technology investment, and operating model optimization Consolidated and Segment Revenue (Q3 2025 vs. Q3 2024, in millions) | Segment | Q3 2025 | Q3 2024 | | :-------------------- | :------ | :------ | | U.S. Markets gross revenue | $912.8 | $848.1 | | International gross revenue | $260.1 | $241.6 | | Total gross revenue | $1,172.9 | $1,089.6 | | Total revenue as reported | $1,169.5 | $1,085.0 | Consolidated and Segment Adjusted EBITDA (Q3 2025 vs. Q3 2024, in millions) | Segment | Q3 2025 | Q3 2024 | | :-------------------- | :------ | :------ | | U.S. Markets Adjusted EBITDA | $350.7 | $319.9 | | International Adjusted EBITDA | $112.4 | $110.5 | | Consolidated Adjusted EBITDA | $425.1 | $393.7 | Adjustments to EBITDA (Q3 2025 vs. Q3 2024, in millions) | Adjustment Category | Q3 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | | Stock-based compensation | $36.4 | $33.8 | | Mergers and acquisitions, divestitures and business optimization | $6.9 | $7.3 | | Accelerated technology investment | $22.1 | $21.8 | | Operating model optimization program | $11.5 | $47.3 | | Net other | $2.3 | $(2.0) | | Total adjustments to EBITDA | $79.2 | $108.3 | [Adjusted Net Income and Adjusted Diluted Earnings Per Share (Schedule 3)](index=17&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20Earnings%20Per%20Share%20(Schedule%203)) Schedule 3 presents the reconciliation of Net income attributable to TransUnion to Adjusted Net Income and Adjusted Diluted Earnings Per Share for Q3 and the nine months ended September 30, 2025 and 2024. Key adjustments include amortization of certain intangible assets, stock-based compensation, M&A-related expenses, accelerated technology investment, and operating model optimization Adjusted Net Income and Adjusted Diluted EPS (Q3 2025 vs. Q3 2024, in millions except per share data) | Metric | Q3 2025 | Q3 2024 | | :-------------------------- | :------ | :------ | | Net income attributable to TransUnion | $96.6 | $68.0 | | Adjusted Net Income | $216.5 | $204.5 | | Diluted earnings per common share | $0.49 | $0.35 | | Adjusted Diluted Earnings per Share | $1.10 | $1.04 | Adjustments to Net Income before Income Tax Items (Q3 2025 vs. Q3 2024, in millions) | Adjustment Category | Q3 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | | Amortization of certain intangible assets | $73.2 | $71.5 | | Stock-based compensation | $36.4 | $33.8 | | Mergers and acquisitions, divestitures and business optimization | $6.9 | $7.3 | | Accelerated technology investment | $22.1 | $21.8 | | Operating model optimization program | $11.5 | $47.3 | | Net other | $1.6 | $(2.1) | | Total adjustments before income tax items | $151.8 | $179.6 | [Adjusted Provision for Income Taxes and Adjusted Effective Tax Rate (Schedule 4)](index=20&type=section&id=Adjusted%20Provision%20for%20Income%20Taxes%20and%20Adjusted%20Effective%20Tax%20Rate%20(Schedule%204)) Schedule 4 provides the reconciliation of the GAAP Provision for income taxes to the Adjusted Provision for Income Taxes and the calculation of the Adjusted Effective Tax Rate for Q3 and the nine months ended September 30, 2025 and 2024. The Adjusted Effective Tax Rate for Q3 2025 was 27.1%, up from 24.6% in Q3 2024 Adjusted Provision for Income Taxes and Effective Tax Rate (Q3 2025 vs. Q3 2024, in millions) | Metric | Q3 2025 | Q3 2024 | | :------------------------------------ | :------ | :------ | | Income before income taxes | $150.1 | $96.8 | | Adjusted income before income taxes | $301.9 | $276.4 | | Provision for income taxes | $(50.0) | $(24.9) | | Adjusted Provision for Income Taxes | $(81.8) | $(68.0) | | Effective tax rate | 33.3% | 25.7% | | Adjusted Effective Tax Rate | 27.1% | 24.6% | - Adjustments for income taxes include the tax effect of pre-tax adjustments, elimination of excess tax expense for stock-based compensation, and other adjustments such as deferred tax adjustments and valuation allowance adjustments[57](index=57&type=chunk)[58](index=58&type=chunk) [Leverage Ratio (Schedule 5)](index=21&type=section&id=Leverage%20Ratio%20(Schedule%205)) Schedule 5 calculates the Leverage Ratio, defined as net debt divided by Leverage Ratio Adjusted EBITDA for the trailing twelve months ended September 30, 2025. The Leverage Ratio was 2.7, with net debt at $4,370.2 million and Leverage Ratio Adjusted EBITDA at $1,608.3 million Leverage Ratio Calculation (Trailing Twelve Months Ended Sep 30, 2025, in millions) | Metric | Amount | | :------------------------------------ | :----- | | Net income attributable to TransUnion | $420.4 | | Consolidated Adjusted EBITDA | $1,607.2 | | Leverage Ratio Adjusted EBITDA | $1,608.3 | | Total debt | $5,120.1 | | Less: Cash and cash equivalents | $749.9 | | Net Debt | $4,370.2 | | Leverage Ratio | 2.7 | - Leverage Ratio Adjusted EBITDA includes six months of Adjusted EBITDA related to Monevo prior to its acquisition in April 2025[61](index=61&type=chunk) [Segment Depreciation and Amortization (Schedule 6)](index=23&type=section&id=Segment%20Depreciation%20and%20Amortization%20(Schedule%206)) Schedule 6 provides a breakdown of depreciation and amortization expenses by segment for Q3 and the nine months ended September 30, 2025 and 2024. For Q3 2025, total depreciation and amortization was $145.6 million, with U.S. Markets accounting for $106.7 million and International for $38.0 million Segment Depreciation and Amortization (Q3 2025 vs. Q3 2024, in millions) | Segment | Q3 2025 | Q3 2024 | | :-------------------------- | :------ | :------ | | U.S. Markets | $106.7 | $99.3 | | International | $38.0 | $33.4 | | Corporate | $0.9 | $1.0 | | Total depreciation and amortization | $145.6 | $133.6 | [Reconciliation of Non-GAAP Guidance (Schedule 7)](index=24&type=section&id=Reconciliation%20of%20Non-GAAP%20Guidance%20(Schedule%207)) Schedule 7 reconciles GAAP guidance for Net income attributable to TransUnion and Diluted earnings per share to their respective non-GAAP adjusted measures for Q4 and the full year 2025. This includes adjustments for stock-based compensation, M&A-related expenses, and other items to arrive at Adjusted EBITDA and Adjusted Diluted Earnings per Share guidance Reconciliation of Non-GAAP Guidance (Q4 and FY 2025, in millions except per share data) | Metric | Q4 2025 (Low) | Q4 2025 (High) | FY 2025 (Low) | FY 2025 (High) | | :------------------------------------ | :------------ | :------------- | :------------ | :------------- | | Net income attributable to TransUnion | $84 | $93 | $438 | $448 | | Adjusted EBITDA | $393 | $407 | $1,622 | $1,637 | | Diluted earnings per share | $0.42 | $0.47 | $2.21 | $2.26 | | Adjusted Diluted Earnings per Share | $0.97 | $1.02 | $4.19 | $4.25 | - Adjustments to diluted earnings per share for Q4 2025 are estimated at **$0.55** (low and high), and for FY 2025 at **$1.98** (low and high)[65](index=65&type=chunk)